Post Office scheme: Invest Rs 333 per day in this plan and get around Rs 16 lakh at maturity
Investing in a Post Office Recurring Deposit (RD) scheme can generate decent returns while carrying minimal risk.
In India, many people with middle-class incomes are opting for safe investment options that offer good returns and turning to the Post Office. The Post Office provides different schemes, including the Post Office Recurring Deposit Account, which offers higher returns compared to bank Fixed Deposits (FDs) and Recurring Deposits (RDs), making it an attractive option.
Opening a Post Office Recurring Deposit (RD) account is a simple process that is available to anyone over the age of 10, including adults and children. The minimum monthly deposit amount is Rs 100, and the contribution can be increased by multiples of Rs 10 each month. The current interest rate offered by the Post Office RD is 5.8 per cent, which is determined by the government every quarter.
The Post Office Recurring Deposit account requires a minimum of five years or 60 months from the opening date to mature, whichever comes first. Depositors are allowed to withdraw up to 50 per cent of their deposit balance after one year of opening the account. Additionally, depositors can take a loan of up to 50 per cent of the deposit amount after one year of opening the account.
Investing in a Post Office RD has numerous benefits, especially its ability to ensure the safety and security of both the principal amount and the earned interest. Due to its relatively low risk, it’s an ideal investment for those looking to invest small amounts of money regularly.
For instance, if someone invests Rs 10,000 per month, which equates to about Rs 333 per day, they can expect to receive a return of approximately Rs 16 lakh after ten years, given the current interest rate of 5.8%. Over the course of ten years, the total deposit would amount to Rs 12 lakh, with an estimated return of approximately Rs 4.26 lakh. The compound interest is calculated quarterly, providing investors with frequent earnings.